Stakeholders Flashcards
Internal stakeholders
Owners
Shareholders
Employees
Directors
Trade Union
Managers
External stakeholders
Suppliers
Government
Local community
Lenders
Legal bodies
Taxpayers
Customers
Pressure groups
Owners and their interests
These are people who have invested money in the business. They can also manage in a small business their interest include: high profit, good corporate image, increased market share and growth
Shareholders and their interests
These are people who have invested money in the business which is a limited company the investment is in the form of shares and this makes them part owners and their interests include: increased dividends
Directors and their interests
They are appointed to the board of a limited and they are responsible for the overall running of the company. They have different for different aspects of the company. Their interests include: increased salary, increased dividends
Managers and their interests
They are responsible for the day to day running of the business. They oversee the work being done. Their interests include: increased salary, perks and business success
Employees and their interests
Employees work hard in the business and rely on their livelihood. Interests include: job security, fair pay, promotion and increased wage
Trade unions and their interests
They represent employees interests in relation to issues such as working conditions, wages, equal opportunities and health and safety.
Producers/suppliers and their interests
They supply raw materials and finished goods to a business. Interests include fair price, increased orders/sales, prompt payment, steady sales
Consumers and their interests
Consumers are a vital group of stakeholders to the business as without them the business would not exist. Their interests include fair prices, good choice, quality and innovation
Lenders and their interests
It’s probable that the business will have borrowed money from a bank or other source to start up a business, keep it running or expand. Their interests include the business to succeed so that they can repay money borrowed
Pressure groups and their interests
These groups are formed by people wishing to exert an influence on business and consumer activity. Members may lobby a business if it plans to engage in some activity which they don’t agree with. Interests include not engaging in activities that go against their principles
Local community and their interests
This group live near businesses and want to see general business prosperity in its local area. If businesses are successful, there is more employment created in the area, so workers have more money to spend this can improve the life of local residents. Interests include employment, reduced pollution and charitable activities
Government and their interests
This comprises both local and central government. The government will want businesses to do well and make more profit, as this means they will receive more Tax, VAT and national insurance contributions. Interests include job creation, pay taxes and abide by laws
Competitors and their interests
The competitions of a business sell similar goods and services known as substitutes. The more similar these products are, the more the business will need to ensure that it adds value to their products to make the more desirable than competitors products. Interests include price, quality, choice and sales promotions of other businesses
